You are a financial analyst for the Stetson Company. The director of capital budgeting has asked you to analyze two proposed capital Investments, Project X and Project Y. Project X costs $100,000 whereas Project Y costs $20,000. The cost of capital for each project is 12 percent. The projects' expected cash flows are as follows: Expected Net Cash Flows Year Project X Project Y 0 ($100,000) ($5,000) 1 $65,000 $2,500 2. $30,000 $2,500 3 $30,000 $2,500 4 $10,000 $2,500 3 $30,000 $2,500 $10,000 $2,500 a. Calculate each project's NPV, IRR. (3+3-6 points) b. Which project should be accepted if they are independent? If they are mutually exclusive? (2 points) c. What is the cross over rate? (3 points) d. How might a change in the cost of capital produce a conflict between the NPV and IRR rankings of these two projects? It the company did not do well and their cost of capital rose rapidly to 18%, would your decision change from part b? 12 points) e. Why does the conflict exist? Under what scenarios do we see a conflict?(3 points)